35-CERT 1 coccsec.txt A:\COCCSEC.DOC\1 CENTRAL OHIO COAL COMPANY QUARTERLY REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT RELEASE NO. 26573 FOR THE QUARTER ENDED MARCH 31, 2001 CONTENTS Page Statements of Income and Retained Earnings 1 Balance Sheets 2-3 Information Concerning Mine Operations and Capital Improvements 4 Calculation of Cost of Capital and Statement of Cost of Commercial Coal Sold and Shipped 5 Statement of Cost of Operation 6 Analysis of Mining Plant in Service 7 CENTRAL OHIO COAL COMPANY STATEMENT OF INCOME FOR THE QUARTER ENDED MARCH 31, 2001 (UNAUDITED) (in thousands) OPERATING REVENUES $10,187 COST OF OPERATION 11,433 ------- OPERATING LOSS (1,246) NONOPERATING INCOME 1,291 ------- INCOME BEFORE FEDERAL INCOME TAXES 45 FEDERAL INCOME TAXES ON OPERATIONS 45 ------- NET INCOME $ - ======= STATEMENT OF RETAINED EARNINGS FOR THE QUARTER ENDED MARCH 31, 2001 (UNAUDITED) (in thousands) BALANCE AT BEGINNING OF PERIOD $3 NET INCOME - CASH DIVIDENDS DECLARED 3 -- BALANCE AT END OF PERIOD $- == The common stock of the Company is wholly owned by Ohio Power Company. CENTRAL OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) March 31, 2001 ------------ (in thousands) ASSETS MINING PLANT: Mining Plant in Service $ 50,212 Accumulated Depreciation and Amortization 49,579 -------- NET MINING PLANT 633 -------- OTHER PROPERTY AND INVESTMENTS 1,226 -------- CURRENT ASSETS: Cash and Cash Equivalents 11 Accounts Receivable: General 281 Affiliated Companies 20,399 Advances to Affiliates 48,600 Materials and Supplies 6,021 Prepayments and Other 1,159 -------- TOTAL CURRENT ASSETS 76,471 -------- DEFERRED INCOME TAXES 54,927 -------- DEFERRED CHARGES 72 -------- TOTAL $133,329 ======== CENTRAL OHIO COAL COMPANY BALANCE SHEET (UNAUDITED) March 31, 2001 ------------ (in thousands) CAPITALIZATION AND LIABILITIES SHAREHOLDER'S EQUITY: Common Stock - Par Value $0.10: Authorized - 100,000 Shares Outstanding - 69,000 Shares $ 7 Retained Earnings - -------- TOTAL SHAREHOLDER'S EQUITY 7 -------- OTHER NONCURRENT LIABILITIES: Accrued Postretirement Benefits Other Than Pensions 57,432 Accrued Reclamation Costs 30,306 Mine Closure 1,257 Other Operating Reserves 22,838 -------- TOTAL OTHER NONCURRENT LIABILITIES 111,833 -------- CURRENT LIABILITIES: Accounts Payable: General 759 Affiliated Companies 1,153 Taxes Accrued 7,912 Accrued Reclamation Costs 4,031 Accrued Vacation Pay 278 Workers' Compensation Claims 998 Other 2,728 -------- TOTAL CURRENT LIABILITIES 17,859 -------- DEFERRED CREDITS 2,065 -------- REGULATORY LIABILITIES 1,565 -------- TOTAL $133,329 ======== CENTRAL OHIO COAL COMPANY INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS FOR THE QUARTER ENDED MARCH 31, 2001 MINE CLOSURE AND PENDING SALE The Company closed the Muskingum mine and efforts are underway to reclaim the property. A memorandum of understanding was reached in April 2001 with an outside coal company to purchase all of the stock of the Company from Ohio Power Company. The transaction is expected to close on or about June 30, 2001. CENTRAL OHIO COAL COMPANY CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED FOR THE QUARTER ENDED MARCH 31, 2001 (in thousands, except as noted)
January through March 2001 I. Calculation of Cost-of-Capital Compensation: ------------------------------------------- A. Equity Investment at Beginning of Period: Common Stock $ 7 B. Rate of Return Allowable per HCAR No. 26573: 10.27% per annum, 2.5675% per quarter .025675 -------- C. Earnings Allowable: (re investment in item A) 1. Current Quarter $ - ======== 2. Year-to-Date $ - ======== D. Net Income per Statement of Income $ - Add: Interest Charges - Less: Nonoperating Income 1,291 -------- E. Applied Cost-of-Capital Billing Adder: 1. Current Quarter $ (1,291) ======== 2. Year-to-Date $ (1,291) ======== II. Coal Billing Calculation: ------------------------ A. Total Operating Expenses (a) $ 11,478 B. Add: Cost-of-Capital Billing Adder as Applied per E. 1. of Section I (1,291) -------- C. Cost Applicable to Current Quarter Coal Billings $ 10,187 ======== D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) 163,628 ======= E. Average Price per Ton to Ohio Power (in dollars) (C/D) $62.26 ====== (a) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statements of Income.
CENTRAL OHIO COAL COMPANY STATEMENT OF COST OF OPERATION FOR THE QUARTER ENDED MARCH 31, 2001 (in thousands) Direct Labor-UMW* $ 269 Indirect Labor-UMW* 1,193 Benefits-UMW* 4,094 Salaries and Benefits-Nonunion 892 Operating Supplies 1,002 Repair Parts and Materials 755 Electricity and Other Utilities 592 Outside Services-Maintenance, Haulage and Reclamation 474 Taxes Other Than Federal Income Taxes** 316 Rental of Equipment 22 Mining Cost Normalization*** 1,801 Reclamation (1,527) Other Production Costs 1,357 ------- Subtotal 11,240 Transfers of Production Costs (to)/from Coal Inventory 193 ------- Total $11,433 ======= * United Mine Workers of America. ** Excludes FICA, Federal Unemployment and State Unemployment Taxes. These costs are reflected in employee benefits. *** Represents the deferral/accrual required to establish a selling price based on forecasted results for the year. The amount of mining cost normalization is established on an "overall" company basis(i.e., not itemized) and is eliminated by year-end. CENTRAL OHIO COAL COMPANY ANALYSIS OF MINING PLANT IN SERVICE AND RELATED ACCUMULATED PROVISIONS FOR DEPRECIATION AND AMORTIZATION March 31, 2001 --------------------------- Net Gross Accumulated Carrying Cost Provisions Amount ----- ----------- -------- (in thousands) Description Surface Lands $ 324 $ - $324 Mining Structures and Equipment 47,596 47,287 309 Leasehold Improvements 2,292 2,292 - ------- ------- ----- Total Mining Plant in Service $50,212 $49,579 $633 ======= ======= ====